In February the airline said it aimed to fully transform its business, including its network, fleet, labour agreements and other cost structures, aiming to save 7.5 billion Swedish crowns ($766.54 million) a year by 2025/2026.

"Unfortunately, negotiations so far have produced limited results and there is a long way to go before SAS's management and board can say that the plan has been implemented successfully," the company said in a statement.

It gave no further details.

The airline, in which Sweden and Denmark each hold a stake of around 22%, secured a 3 billion crown rescue deal from the two governments in 2020 to keep afloat during pandemic, which virtually shut down the air travel industry.

The airline reported a net loss of 6.5 billion crowns in its financial year 2020/2021 following a 9.2 billion loss the year before.

($1 = 9.7842 Swedish crowns)

(Reporting by Simon Johnson; editing by Niklas Pollard)